1989-0802704L
NO 39 -090-
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH
C H GUERNSEY & COMPANY FOR PROFESSIONAL ENGINEERING SERVICES
AUTHORIZING HE EXPENDITURE OF
REGARDING , AND PROVD NG AN ANALYSIS, EFFECTIVE DATE
FUNDS THEREFOR
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the Mayor is authorized to execute an
agreemen-etween the City of Denton and C H Guernsey for
professional engineering services regarding electric rate
analysis, under the terms and conditions contained in agreement,
a copy of which is attached hereto and made a part hereof
SECTION II hat the
ht
Ni Nineteen ThousandeBEigthe
not totyexceed Council
expen ture o
Hundred Dollars ($19,800 00)
SECTION III That i and approval shall become effective
imme ate y upon its passage PASSED AND APPROVED this the A day of June, 1989
~
RAY ST NS, r AY OR
ATTEST
;PISsR , C E R
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY 1112®~
2704L
THE STATE OF TEXAS AGREEMENT BETWEEN THE CITY OF
DENTON AND C H GUERNSEY &
COMPANY FOR ENGINEERING SERVICES
COUNTY OF DENTON 5
THIS AGREEMENT made, entered into and executed this 12th day
of June , 1989, by and between the CITY OF DENTON, TEXAS,
hereina ter called the "OWNER" and C H GUERNSEY & COMPANY,
Oklahoma City, Oklahoma, hereinafter called the "ENGINEER"
ized asolto
herein, by and through its representative, duly author
act for and in behalf of said ENGINEER
WITNESSETH, that in consideration of the covenants and
agreements herein contained, the parties hereto do mutually agree
as follows
SECTION I
EMPLOYMENT OF ENGINEER
The OWNER agrees to employ the
agrees to perform professional
connection with assignments related
special studies and other requests
ENGINEER to perform and, for having
OWNER agrees to pay the ENGINEER comp,
ENGINEER, and the ENGINEER
engineering services, in
to electric rate analysis,
the OWNER authorizes the
rendered such services, the
ansation as stated herein
SECTION II
PERIOD OF SERVICE
This AGREEMENT shall become effective upon execution by the
OWNER and the ENGINEER, and shall conform to the following
Project Schedule
DELIVERABLES
1 fEngineer
indings sandl rrecommendationsm pursuant tto rseorvices
rendered as described in Scope of Work, Attachment B
The report shall include
o An Executive Summary of key points and recommenda-
tions, and
o Supporting exhibits, schedules, figures and work-
papers
2 Engineer shall attend and participate in up to two
the analysis
the findings city councl
o) the meetings Utility Board and to the
t
PERFORMANCE PERIOD
Within 45 days from the execution of the Agreement tot
Engineering Services, ENGINEER shall prepare and submi
a draft report to OWNER
final
ENGINEER ngshall e provide the
Within 15 report from ayOWNER, after
written report to OWNER
ENGINEER shall participate in up to two (2) meetings with
the Denton Utility Board and City Council, as requested
by OWNER
SECTION III
BASIC SERVICES
The OWNER will authorize, in writing, the ENGINEER to perform
according to the scope of work set forth in attachment B
The ENGINEER will provide the requested services as defined
in said scope of work
SECTION IV
RESPONSIBILITIES OF OWNER
OWNER agrees to assist the ENGINEER by providing the tollowLng
for each assignment
A Designate in writing a person to act as OWNER's represen-
tative with respect to
this Agreement Such personsshallehave oontract authority
transmit instructions, receive information, and in
pretanddefine OWNER's policies ad decisions with
respect to ENGINEER's services
B Assist ENGINEER by placing at ENGINEER's disposal all
available pertinent information including previous reports
and any other data relative to the assignment of project
C Examine all studies, reports, sketches, drawings, specifi-
cations, proposals, and other documents as set torth in
PAGE 2 of 8
Scope of Work (Attachment B), obtain advice of an attorney,
insurance counselor and other consultants as OWNER deems
appropriate for such to examination, within a nrdeasrender in onable timew so was
decisions pertaining there
not to delay the services of ENGINEER
SECTION V
COMPENSATION
The OWNER agrees to pay the ENGINEER for all processional
services rendered under this Agreement in accordance with the
following
A bThe ased NonNthe Schedule of Charges shown in Attato exceed chment A
B tThe he amountR of may submit requests for payment based upon
submitted more frequently than monthly
Any applicable new taxes imposed upon service, expenses, and
charges by any governmental body after the execution of this
contract will be added to the ENGINEER's compensation
If OWNER fails to make any payment due ENGINEER for services
and expenses within forty-five (45) days after receipt of
ENGINEER's statement therefor, the amounts due
er ENGINEER wilsabe month from id
increased at the nd e in of one addition, percent ENGINEER, after giving seven
forty-fifth day, and,
(7) days' written notice to OWNER, suspend services under this
Agreement until ENGINEER has been paid in full all amounts due
for services, expenses, and charges
SECTION VI
NOTICES
All notices, communications and reports required orr permitted
under this contract shall be personally delivered the respective parties by depositing same in the U S mail,
certified, return receipt requested, at otthe herwise fish own
below, unless and until either party is
writing by the other party at the following addresses All
notices shall be deemed delivered as of the date of the receipt
if intended for City, to if intended for ENGINEER, to
City of Denton C H Guernsey & Company
Suhas P Patwardhan, Vice Pres
Lloyd V Harrell, City Manager 3555 Northwest 58th Street
215 E McKinney
Denton, TX 76201 Oklahoma City OK 73112
PAGE 3 of 8
SECTION VII
OWNERSHIP OF DOCUMENTS
All documents prepared or furnished by ENGINEER (and
ENGINEER's independent associates and consultants) pursuant to
ereand ENGINEER shall OWNER may e
this Agreement are instruments nteresservice
retain an ownership and property such
and retain copies for information and reference, however,
documents are not intended or represented to be suitable for
rby OWNER Or oers euse to Texas ENGINEER Opn Records understands
Act dsanddmustnthat OWNER is subjec lawfully
provide all applicable records in its possession to the public
upon proper request
SECTION VIII
INDEMNITY AGREEMENT
ENGINEER shall indemnify and save harmless the OWNER and its
officers, agents, and employees from the liability of the OWNER
on account of any injuries or damages
ncreceived ludi g or suscostsd and court
any person or persons or property, l the OWNER, proximately
reasonable attorneys fees incurred by
caused by the negligent acts or omissions of the ENGINEER or its
officers, agents, or employees in the execution, operati, or
performance of this Agreement
SECTION IX
ENGINEERING STANDARDS
ENGINEER shall perform the services provided for in this
the hi essionhest standards and code of
Agreement consistent withrof
ethics of the engineering p
SECTION X
TERMINATION OF CONTRACT
(3this U) Agreement
The obligation to provide services under
written
be terminated by either party p the other party to
notice in the event of substantial failure by
perform in accordance with the terms thereof through thino Agreement
the terminating party The OWNER may terminate s
upon forty-five (45) days' written notice t tithe ENGINEER
will f rpany
reason In the event of any termination,
for all services rendered and reimbursable expenses incurred to
the date of termination
PAGE 4 of 8
SECTION XI
SUCCESSORS AND ASSIGNMENTS
OWNER and ENGINEER each are hereby bound and the partners,
successors, executors, administrators and legal representatives
of OWNER and ENGINEER are hereby bound to the other party
Agreement and to the partners, successors, executors,
administrators egrepresentatives of ll covenants, agreements)
such and
such other r party, in respect
obligations of this Agreement
Neither OWNER nor ENGINEER shall assign, sublet or transfer
any rights under or interest in (including,
limitation, moneys that may become due or moneys that are due)
any the written consent of
assignment, sublettingh orottransf rceps
extent that without
tolsthe Agreement
mandated by law or the effect of this limitation may be
restricted by law Unless specifically stated to the contrary in
any written consent to an assignment, no assignment will release
or discharge contained in this paragraph shall prevent ENGINEER
from employing such independent associates and consultants as
ENGINEER may deem appropriate to assist in the performance of
services hereunder
Nothing under this Agreement shall be construed to give any
rights or benefits and lallh dutieseeandt responsibilities undertaken
and ENGINEER, , a
pursuant to this Agreement will be for the sole and exclusive
benefit of OWNER and ENGINEER and not for the benefit of any
other party
This Agreement and amendments thereto (consisting of pages 1
to 8 inclusive) constitutes the entire Agreement between OWNER
and ENGINEER andThissupersedes all may only oa oral
understandings duly executed written
supplemented, modified or cancelled by a
instrument
SECTION XII
ATTACHMENTS
The following Attachments are appended to and made a part of
this Agreement
Attachment A Schedule of Charges
Attachment B Scope of Work
PAGE 5 of 8
This contract is executed in two counterparts
ATTEST
CITY OF DENTON, TEXAS (OWNER)
ATTEST
b.
SB~CG BY
BY
C H GUERNSEY & COMPANY (ENGINEER)
BY ~ 9
PAGE 6 of 8
ATTACHMENT A
SCHEDULE OF CHARGES
For all services rendered by Engineer in connection with the
Schedule of Engineering Services, compensation shall be on a
the
cost-lus
plus
applicable basis, labor cost of compensation shall plus 100% therefor, to
subsistence
reimbursement of actual transportation, reasonable
all for
paid to employees incident to the project, a
telephone, supplies, computer services and postage applicable and
necessarily incurred in carrying out the engineering responsibil-
ities required The applicable total labor cost is defined as
the cost of salaries (including leave, andchahroliday
pay applicable thereto) of personnel
to the project, plus employment and payroll taxes, plus contri-
butions for social security, unemployment compensation insurance,
time and benefits and medical insurance benetits
Total labor cost is equal to 1 35 times payroll, this factor
is subject to annual adjustment
Any subconsultant charges shall be billed at actual cost
times a multiplier of 1 10
PAGE 7 of 8
ATTACHMENT B
SCOPE OF WORK
ENGINEER shall develop an analysis and recommendations for
presentation to OWNER'S Utilities Board and the City Council on
the feasibility and appropriateness of OWNER'S electric retail
rate schedules The various tasks which shall be performed
include
Task 1 The ENGINEER will develop a cost of service analysis for
the Denton Electric System, the test year used for the
cost of service analysis will be the FY 1989-1990
Task 2 Consistent the 1990ddatar, Task 1 cost of
update recommendations previously made regarding
o Standby and Partial Requirements Rate Schedules
o Industrial/Economic Development Rate Schedules
o Time-of-Use Rate Schedules
o Thermal Storage Rate Schedules
Task 3 ENGINEER will apply results of FY 1989-1990 cost of
service along with other rate design criteria commonly
used in the utility industry to analyze the existing
electric rate schedules of Denton ENGINEER shall make
recommendations on the appropriate changes in the
existing rate tariffs and development of any new rate
tariffs which would be consistent with cost of service
and other ratemaking criteria
o ENGINEER will develop an expanded block rate design
(less than 50 KW) for small General Service class and
based on this rate, redesign
and Large Primaeyera Service,
General Service Primary an
o ENGINEER shall consider redesign of all rates based
on TMPA's reduction in fixed costs and make
recommendations accordingly
PAGE 8 of 8